With nearly a billion people, India has one-sixth of the world's population. At current rates of growth, its population will reach 1.6 billion and surpass China by the middle part of the next century. This growth has obvious implications for health and nutrition, growth in per capita income, demand for education and public services, employment, and the environment.

Nevertheless, some gains have been made. Fertility rates have dropped by almost half in the past 30 years, and some southern states like Tamil Nadu and Kerala have reached the point of zero growth. If north India were able to achieve replacement levels similar to those in the south, India would have 480 million fewer people by the time it reaches population stabilization at the national level around 2088.

The USAID program focuses on Uttar Pradesh, India's most populous state. The program aims to increase the quality of, demand for, and access to a broad range of reproductive health and family planning services and to address related fertility parameters including the status of women.

Since 1994, the program has established an autonomous agency to coordinate implementation of USAID's largest family planning project. The agency has held workshops for all senior district officials and family planning managers in Uttar Pradesh; financed training by the Indian Medical Association of 7,000 doctors in family planning counselling and the use of oral contraceptives; developed training curricula and programs for nurse midwives, private practitioners and traditional doctors; and provided USAID project-funded grants to 30 nongovernmental organizations (NGOs) involved in providing a range of health and family planning services, increasing coverage of an additional five million people. During the next three years, it will train 12,000 village doctors, upgrade hundreds of primary health care centers, and support a major social marketing of contraceptives, educating villagers on birth spacing and increasing access to services through private providers.

As part of the effort, USAID financed the national family health survey, India's most complete analysis to date of family health, covering 24 states and based on interviews with nearly 90,000 women. It supported analysis, publicity and distribution of the valuable base-line data on demographic, health and nutrition status, fertility and family planning practices, and is the key to measuring the results of USAID's efforts.

USAID continued support to local NGOs providing maternal and child health services and contributed to one of the largest polio eradication drives in the world, immunizing more than 90% of India's 75 million children under three in 1995.

With eight successive good monsoons, India's foodgrain production has increased markedly, but massive poverty, inadequate infrastructure and policy failures at both state and federal levels mean more than half of India's young children are malnourished and maternal malnutrition is widespread. One-third of India's population, or 300 million persons, is food insecure. Long-term food security is challenged by India's rapid population growth--18 million people every year--and the real likelihood of a failed monsoon.

USAID's strategy is to focus its food aid increasingly in the northern states where the need is greatest. The P.L. 480 Title II program, managed by the Cooperative for Assistance and Relief Everywhere (CARE) and the Catholic Relief Services (CRS), supports efforts to improve maternal and child nutrition and health, thereby reducing mortality rates, influencing fertility, and complementing our efforts in population and health. In 1995, both organizations moved more of their resources to the north. CARE closed operations in three southern states to concentrate more in the north; CRS closed operations in Tamil Nadu and Kerala and is initiating a program in Uttar Pradesh.

Both CARE and CRS work through local organizations to reach some seven million children and pregnant and lactating mothers. CARE supports the Government of India's (GOI's) Integrated Child Development Services, the largest child survival program in the world. Responding to a USAID-funded impact evaluation, CARE last year developed an integrated nutrition and health program to strengthen ancillary nutrition and health services in coordination with P.L. 480 Title II food supplements in more than 92,000 of India's villages. CRS works through organizations affiliated with people such as Mother Teresa and the Dalai Lama to reach some of India's most destitute. Included among the programs successes are the following:

o CARE has developed an impressive logistical base, allowing the program to move large quantities of food to a widely dispersed beneficiary population.

o CARE and CRS outreach systems provide access to the most remote geographical areas and to some of the most vulnerable people, including tribes and castes.

o CARE and CRS programs support established women's groups and provide a point of entry for widespread dissemination of family planning, health, and nutrition information.

The combination of accelerated economic development and rapid population growth could precipitate an ecological crisis that reverses India's hard won economic gains and increases negative impacts on the global environment. Already the second fastest growing producer of greenhouse gases in the world, India could triple its emissions between 1987 and 2010 if there is no change in current practices. Carbon dioxide emissions are expected to double during the same period, and chloro-fluorocarbon (CFC) emissions, which cause ozone depletion, are growing rapidly. USAID's environmental protection activities address these environmental concerns.

India's demand for power, expected to double in the next five years, poses a significant threat to the global environment. Power plants fueled with high ash coal are a major source of pollution in India. USAID's environmental energy program is increasing the percentage of power generated by clean technologies to decrease the volume of CO2 emissions per unit of power generated. USAID promotes the development of innovative clean coal and renewable energy technologies. For example, USAID has lent funds to a U.S.-India joint venture to manufacture a variety of air pollution control equipment to reduce emissions from steel, cement and thermal power plants. This joint venture has already installed equipment valued at $18 million and has orders for an additional $18 million. It is typical of a rapidly expanding pollution-control industry, growing largely as a result of joint ventures with foreign firms, many of which are U.S.

A principal criterion for USAID's pollution prevention activities is their potential to serve as a catalyst to leverage expansion and follow-on activities supported by other donors such as the World Bank and Asian Development Bank. USAID worked with the World Bank on its $250 million industrial pollution control project. It is also coordinating with the Asian Development Bank on environmental projects, including one designed to develop environmentally sound coal technology. Because of the considerable amount of donor activity on the environment, USAID maintains an active dialogue with other donors in this area.

In addition to promoting increased private investment in clean power generation, the USAID program also targets technical assistance on policies, regulations and technologies that can dramatically reduce the amount of air pollution per unit of power generated. USAID-financed technical assistance to state electricity boards and the GOI facilitates the evaluation and processing of the numerous pending private power investment proposals which will result in more efficient and environmentally sustainable plants. USAID has been particularly successful in leveraging government contributions, as demonstrated by Indian investments which are additional to the USAID program of more than $4 million in air and water pollution control equipment. A total of 25 consortium projects have been funded for technology development in areas such as coal beneficiation. Multilateral development banks are preparing more than $1 billion in new energy efficiency and environmental programs which are in various stages of preparation.

India's rapidly growing cities pose crucial environmental challenges: poorly managed urbanization, weak local governments, and the near absence of functioning urban infrastructure contribute to deplorable conditions affecting growing numbers of families. This situation leads to environmental degradation downstream from cities that lack suitable facilities to treat, recycle or dispose of municipal solid waste and sewage. USAID helps India address this urgent issue by strengthening the management capability of state and local governments, community groups and NGOs with environment workbooks and risk assessments that create an accessible information base to prioritize investments by supporting the implementation of legislation to give women a greater role in decision making and control of resources; and by helping India's debt market meet the long-term requirements of new and upgraded environmental infrastructure.

At the same time, USAID is working to preserve India's biodiversity. India is one of the foremost sources of the world's biodiversity and the origin of at least 20 important crop species, including rice, citrus (lemon and orange), banana, cucumber and millet. Loss of genetic diversity threatens many of these crops; deforestation and water pollution also threaten animal and plant diversity. USAID is constructing and equipping one of the world's largest national genebanks to protect germplasm, to preserve India's biodiversity, and to increase global access to important plant species. More than 175,000 germplasm accessions have been identified, collected, and stored for long-term preservation and future access. These plants are now safe from extinction and are being used to develop new and improved food, fodder and medicinal crops.

USAID's HIV/AIDS prevention and control program, located in the southern Indian state of Tamil Nadu, responds to concerns about both health and economic growth. India has been cited as one of the world's most vulnerable growth points for HIV/AIDS. The number of Indians estimated to be HIV positive--1.5 million today--could grow to five million by the end of the decade. The cost to India, both in demand on its already overtaxed health system and in loss of productive workers, could be staggering. USAID is supporting nongovernmental organizations operating programs known to have impact on the spread of AIDS: condom use, treatment for sexually transmitted diseases, and changed behavior. In the last year, USAID has financed the establishment of a new unit in a well-respected Indian NGO to manage grants to organizations working with high-risk groups, their spouses, children and communities. The unit has recruited, hired and trained staff, briefed government counterparts and local NGOs, established criteria, and made its first grants.

Special Objective 2: Increased Investment in Agri-business by Private Firms

USAID's Agricultural Commercialization and Enterprise (ACE) program helps improve the investment environment for private agri-business in horticulture. The project is designed to enhance the skills of its partner, a national development bank, to better serve profitable agri-business development and expansion. The ACE program also nurtures Indo-U.S. agri-business linkages by integrating agriculture with industry. The ACE program finances innovative demonstration projects, providing technical and financial assistance to private companies, business associations and trade and investment tours. The program has already proven effective in increasing rural employment, in providing new employment for women (management and labor), in transferring technology for modern farm inputs, in promoting regulatory reform and in fostering U.S. exports of goods and services. For example, the ACE program helped launch India's first high-quality grape operation. The affected program region now has 15 grape pre-cooling (U.S. equipment) and packing firms as a direct result of the original intervention. The growth of India's grape industry also has spawned a revolution in food packaging, refrigeration, transport and new, improved customs procedures.

PROGRAM: INDIA
TITLE AND NUMBER: Increased Mobilization of Capital through Financial Sector Reforms, 386-S001
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $5,870,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 1998

Purpose: To increase mobilization of capital through financial sector reforms.

Background: India is struggling to raise the capital it needs for sustained economic growth, for new infrastructure and expanded social services to a rapidly increasing population. Tax resources and other government revenues are inadequate. India's fledgling capital market offers great potential for mobilizing resources, foreign and domestic, for new and expanding businesses and for infrastructure investment in water, power and sewage. The extent to which it succeeds will depend, in large part, on its ability to develop more efficient administration, greater transparency and protection for investors. USAID's program offers technical assistance to improve securities market regulations, enforcement and oversight while modernizing the securities trading systems. It also supports the development of a debt market and innovative private-public financing arrangements to fund environmental infrastructure projects such as water supply, sewerage and waste treatment systems. In addition, it promotes expansion of a housing finance system in order to reach lower income families.
USAID Role and Achievements to Date: USAID's economic growth strategy targets activities that have broad impact through policy reform or by support to areas with significant multiplier effects. For example, since USAID helped launch India's over-the-counter exchange in 1993, the exchange has raised more than $50 million for more than 40 small enterprises, creating many permanent jobs in the process. USAID support also has helped the private housing finance sector grow from one single institution to a network of 78 companies with over 250 branches managing more than $2 billion in credit.

Description: USAID supports growth of the private capital market by helping on both policy and regulatory reform and by introducing new technologies required to protect investors. Last year this market raised more than $14 billion in new capital, including significant sums from foreign--including U.S.--investors. USAID is working with the Securities and Exchange Board of India (SEBI) to increase the transparency and administrative efficiency of its equity and bond markets.

USAID supports the development of a debt market to finance environmental infrastructure projects in India to meet the demand for urban services that cannot come from the public sector. The program provides $125 million in loan guarantees (Housing Guaranty funds), as well as technical assistance and training, to generate commercially viable, urban infrastructure projects. The first project under the program--an initial $80 million portion of a water and municipal sewage system in the state of Tamil Nadu--has recently been developed.

USAID has supported private housing finance in India since 1979, has assisted in the rapid expansion of registered housing finance companies, and has supported the development of partnerships with community-based financial institutions which provide credit to upgrade homes. The housing finance program promotes the development of a financially sound, private sector, housing finance system. The objective is to expand long-term home finance for median-income and below-the-median-income households. This program, which draws on $100 million in USAID loan guarantees, provides capital through the National Housing Bank (NHB) for new housing finance companies.

Host Country and Other Donors: Asian Development Bank (ADB) has provided a $250 million loan for development of India's capital markets through policy reforms. This and other multilateral bank loans directly support USAID efforts. The host country contributes well above the total amount of assistance provided by USAID.

Beneficiaries: Beneficiaries include new employees of start-up and expanding companies which create jobs as a result of increased availability of debt and equity capital; Indian and foreign institutional investors (including U.S. investors) who benefit from access to an efficient and transparent capital market; and low-income urban dwellers, including many women, who benefit from improvements in urban sewage and water supply.

Principal Contractors, Grantees, or Agencies: USAID implements this strategic objective through two U.S. contractors and U.S. and local nongovernmental organizations.

Major Results Indicators:
Baseline Target
Increased amount of new capital 244 (1993/94)1 700 (1998/99)
(equity and debt) raised through the
securities markets (Rs. billion)

Increased foreign indirect 1.6 (1993/94)1 5 (1998/99)
institutional (portfolio) investment
($ billion)

Increased amount of private capital 0 (1994)2 3.75 (1998)
used to finance commercially urban
environmental infrastructure (Rs. billion)

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1 Source: Securities & Exchange Board of India discussion paper
2 Source: Regional Housing & Urban Development Office
National Institute of Urban Affairs
Infrastructure Leasing and Financial Services
Housing & Urban Development Corporation

Purpose: To reduce current high level of fertility and improve women's reproductive health by increasing access to, quality of, and demand for a broad range of reproductive health and family planning services and to address related fertility parameters, including the status of women, in India's most populous state, Uttar Pradesh.

Background: The northern Indian, Hindi-speaking states have the country's highest fertility and maternal and child mortality. National and state family planning programs have not provided adequate access to information and quality services to address these problems. The fertility and mortality rates in these states are high, in part, because of inadequate health care services, poorly trained and skilled health providers, and women's low social status (literacy below 30%). This strategic objective includes activities under the Innovations in Family Planning Services Program in Uttar Pradesh, the PACT/CCRH activity which develops new technologies and approaches in the private commercial sector, the PVOH II activity which strengthens nongovernmental organizations' (NGO) capacity to provide maternal and child health and family planning services. New activities (EXPAND, WIN, Girls Education Initiatives) currently under design will further complement this strategic objective.

USAID Role and Achievements to Date: USAID has played an active role in health and family planning activities, and has made clear contributions to the substantial drop in fertility and child mortality. However, because India has only made limited use of new technologies and service approaches, progress in recent years has been considerably slower than in many other countries. USAID is now playing a major role in introducing new service approaches and technologies, to improve quality of services and increase access. In 1994 and 1995, USAID's program in Uttar Pradesh successfully established and staffed an autonomous agency to implement USAID's largest family planning activity. It has successfully established support for improving Government services and has brought in the participation of a wide range of nongovernmental agencies to complement and strengthen the overall family planning and reproductive health program. To increase access to quality services, USAID has supported training of district health officials and family planning providers throughout the state; introduced new training methodologies to make the training programs more competency-based and client-oriented; financed training of almost 7,000 private doctors in family planning counselling and contraceptive use; trained midwives and other village-level private practitioners and traditional doctors; and provided more than 30 NGOs with a range of health and family planning services, increasing service coverage by almost five million people over the past two years. To greatly expand information and provide distribution of contraceptives and information, a pilot social marketing activity has begun.

At the same time, USAID financed a national family health survey, one of the largest of its kind in the world, which provided extremely valuable data and analysis on key demographic and health, fertility and family planning practices and is a key to measuring the result of USAID efforts.

Description: USAID's strategic focus supports broadened access to quality family planning and reproductive health services through the public sector; engagement and funding of the non-government sector, i.e., private voluntary organizations (PVOs), cooperatives, and employers groups in the provision of community-based family planning and reproductive health services; use of commercial networks to promote, market and sell contraceptive products through commercial outlets, and support for a range of government and non-government efforts to improve the role and status of women. The IFPS Project, working in the state of Uttar Pradesh, will focus efforts in 15 priority districts over the next two years, serving 30 million people. Reaching out through the vast government infrastructure, government doctors and paramedical staff will be trained in contraceptive technology, screening for reproductive tract infections, infection prevention, counseling, client follow-up, and supervision and management of services. In the private sector, successful efforts will be scaled up through the provision of an additional 40 to 50 PVO grants serving a population of up to 10 million people either directly or through referral to the government clinics for services. Contraceptive Social Marketing will promote awareness, sales and use of oral contraceptives and condoms resulting in sales of 1.4 million cycles of oral contraceptives and 40 million condoms. This three-pronged approach through the public, private, and commercial sectors will be supported by a statewide communications campaign, and will lay the foundation for phasing into more districts throughout the state. Another effort (the Commercial Contraceptives and Reproductive Health component of the PACT project) will support private sector production, distribution and marketing of reproductive health products with a sales volume increasing by 15% annually.

Host Country and Other Donors: The World Bank, United Nations Population Fund (UNFPA), United Nations Children's Fund (UNICEF), and British Overseas Development Administration (ODA) provide complementary donor support in reproductive health, safe motherhood and child survival. These efforts are primarily channeled through the existing government program. Thus, USAID's support to the private sector is a unique contribution in the Indiancontext. The GOI contributes substantial resources through its personnel and infrastructure that exists throughout India to provide health and family welfare services to the general public and serves an important need in reaching the large numbers of extremely poor clients that are unable to purchase health services from the private sector.

Beneficiaries: The direct beneficiaries of this strategic objective are the women of child-bearing age (age 15-49) of Uttar Pradesh, totaling approximately 30 million women. Secondary beneficiaries are the children under age five, in particular, female children whose survival will be enhanced by the activities in this program.

Principal Contractors, Grantees, or Agencies: The major grantees are the State Innovations in Family Planning Services Project Agency (SIFPSA) and the Industrial Credit and Investment Corporation of India Limited (ICICI). USAID supported cooperating agencies include: JHPIEGO, PCS, CEDPA, AVSC, the Population Council, INTRAH, POLICY, SOMARC and PROFIT.

Major Results Indicators:
Baseline Target
Total Fertility Rate (TFR) for Uttar Pradesh 4.8 (1992)^1/ 3.9 (2001)
Contraceptive Use Rate for Uttar Pradesh 20 (1992)1 30 (1997)
Contraceptive Use Rate for 6 Focus Districts^2/ 33 (1995)^3/ 37 (1997)
Population Served by Non-government Projects (in million) 5 (1995)^4/ 11 (1996)
Contraceptive Social Marketing (CSM) Sales
A. Condoms (million pieces) 21.3 (1995)^5/ 26.2 (1996)
B. Pills (,000 cycles) 233 (1995)^6/ 753 (1996)

PROGRAM: INDIA
TITLE AND NUMBER: Increased Child Survival and Improved Nutrition in Selected Areas, 386-S003
STATUS: Continuing
PROPOSED OBLIGATION FY 1997: $96,075,000 P.L. 480 Title II, $11,650,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2001

Purpose: To reduce the high levels of infant and child mortality of poor children and women in North India through integration of P.L. 480 Title II supplementary feeding into health, nutrition, and other services.

Background: One-third of India's population of 900 million persons lacks adequate food. Over one-half of young children (73 million) are underweight, and chronic maternal malnutrition is widespread. Infant and child mortality rates are very high. Poor access to health care, high illiteracy rates and poor nutrition and health practices are causative factors for high mortality rates.

USAID Role and Achievements to Date: USAID supports Government of India (GOI) and nongovernmental organizations (NGO) efforts to improve child survival in the states where malnutrition, fertility, illiteracy and mortality rates are high. CARE and Catholic Relief Services (CRS) have increasingly focused resources in needier northern states, closing down operations in better-off southern states. P.L. 480 Title II commodities provide nutrition and serve as an entry point for provision of services in health education and nutrition. A 1994 USAID impact evaluation of theCARE program found that immunization coverage and nutrition of under-three year old children was better in CARE- assisted village centers. Over the years, USAID assistance has contributed to a steady decline in infant and child mortality from 101 in 1978-82 to 79 in 1992-93. The PVOs have developed a sustainable logistic base, allowing the program to move large quantities of food to desperately poor people in remote areas.

Description: The P.L. 480 Title II program and Private Voluntary Organization (PVO) Health II project assist efforts to improve maternal and child nutrition, thereby reducing mortality rates and enhancing the impact of USAID's population and health activities. Under another project, the National Institute of Biologicals is being constructed to expand India's capacity to ensure quality vaccines, blood products and other biologicals. Also, USAID's large family planning project in the state of Uttar Pradesh supports spacing contraception which positively impacts child survival. CARE supports India's Integrated Child Development Services program (India's Head Start Program) and reaches 6.5 million beneficiaries in 92,000 villages. In response to the impact evaluation, CARE has now developed an integrated nutrition and health program to improve performance. CRS, working through private registered social service societies, reaches 661,000 beneficiaries, including programs managed by Mother Teresa's and the Dalai Lama's organizations.

Host Country and Other Donors: GOI funds all Integrated Child Development Services personnel, infrastructure, in- country transportation (for both CARE and CRS) and storage costs for P.L. 480 Title II commodities. CARE provides technical assistance, training and logistic support. Other donors include United Nations Children's Fund (UNICEF), World Bank, SIDA, and the UN World Food Program (WFP). Japan is a co-donor with USAID for the National Institute of Biologicals.

Beneficiaries: Direct beneficiaries are the more than seven million children under six years of age and pregnant and lactating women and adolescent girls.

Principal Contractors, Grantees and Agencies: USAID implements the P.L. 480 Title II India program through CARE and CRS.

Major Results Indicators:

Baseline Target
Under-five mortality rate U.P. 141 (1992/93)1 U.P. 113 (2000)
declines (No. of under 5 deaths Orissa 131 Orissa 105
per 1000 children) in selected M.P. 130 M.P. 104
states in north India Bihar 128 Bihar 103
Rajasthan 103 Rajasthan 81

Infant mortality rate U.P. 100 (1992/93)1 U.P. 85 (2000)
declines (No. of infant deaths Orissa 112 Orissa 95
per 1000 live births) in selected M.P. 85 M.P. 73
states in north India Bihar 89 Bihar 75
Rajasthan 73 Rajasthan 62

Percent of children less than U.P. 50 (1992/93)1 U.P. 38 (2000)
four years old classified as under-weight M.P. 57 M.P. 38
in selected states in north India (%) Rajasthan 42 Rajasthan 38

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1 Source: National Family Health Survey

PROGRAM: INDIA
TITLE AND NUMBER : Improved Environmental and Financial Sustainability in the Electric Energy
Sector, 386-S004
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $5,250,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002

Purpose: To improve efficiency of energy supply and use in selected industrial sectors; and to increase the use and adoption of clean coal and renewable energy technologies in generation of power.

Background: A major factor affecting both the pace of India's economic growth and the quality of its environment will be its ability to generate and use electricity efficiently. India is unable to cope with current demand for power. The state power utilities are inefficient, often bankrupt, and unable to serve the needs of a country which already has one of the lowest rates of per capita electricity availability. Yet at current rates of economic growth, demand for electricity will more than double in the next five years, and, to the extent that it is met, it will be met by the use of India's abundant but high-ash coal with environmental implications in India and globally.

USAID Role and Achievements to Date: USAID's technical assistance to the Power Finance Corporation, state electricity boards, and private power companies has helped leverage millions of dollars of loans from the World Bank and the Asian Development Bank. It also has helped open the way for millions of dollars of potential U.S. investment in private power generation through improving the policy and institutional environment for private investment. Specifically, it has facilitated the evaluation and processing of more than 24 private power proposals now pending with the government. USAID-financed technical assistance efforts have led to new policies in two states affecting the possibility of cogeneration, and work in a third state has introduced the state electricity board to demand-side management. Six USAID-funded projects have commercialized technologies that reduce carbon dioxide and other emissions, and USAID assistance resulted in a $14 million joint venture in coal washing--the first of its kind in India.

Description: USAID has three major activities focused on achieving increased financial and environmental sustainability in the energy sector. Working with major development banks, the Energy Management Consultation and Training (EMCAT) project uses a combination of technical assistance and training to address the critical issues affecting the Indian power sector: identifying and supporting policy reforms, reducing power transmission and distribution losses, increasing investments in energy efficiency and demand-side management, and promoting innovative financing of energy efficiency projects. The Program for Acceleration of Commercial Energy Research (PACER) works through a major development financial institute to provide conditional grants for market driven research to develop energy efficient, alternate fuel or renewable energy technologies which have potential for near- term commercial success. The Greenhouse Gas Pollution Prevention (GEP) project will reduce greenhouse gas emissions by facilitating investments and providing specialized technical assistance in advanced coal combustion technologies and bagasse and other biomass cogeneration.

Host Country and Other Donors: Host country contributions exceed $1 billion through implementing agencies and industries' cost share. Multilateral development banks are preparing more than $1 billion in new energy efficiencey and environmental programs.

Beneficiaries: Independent power producers, national and state level utilities, private power utilities, selected high energy intensity industries, energy audit and service companies, sugar industries, agricultural biomass providers, development financial institutions and consumers -- both urban and rural -- also need access to power for everything from irrigation to lighting.

Principal Contractors, Grantees, or Agencies: U.S. companies and consultants, nongovernmental organizations (NGOs) and U.S. Government organizations such as the U.S. Department of Energy.

Major Results Indicators:

Baseline Target
Private power as percentage of power 4.4 (1993/94)1 20(2001/02)
generating capacity (%)

Percentage increase in kilowat hour billed to 73 (1992/93)1 77 (2002/03)
KWH produced (%)

Ratio of net CO2 emissions per unit 1.24 (1993/94)2 1.05 (2004/05)
of power generated (volume of emissions/KWH) (kg/KWH)

________________________________________________
1 Source: Centre for Monitoring Indian Economy
2 Source: Asian Development Bank

Purpose: To improve environmental protection through competitive technologies for the industrial and energy sectors and municipalities; and to finance environmental investments through long-term debt instruments to strengthen local government's management capability.

Background: India, the second fastest growing producer of greenhouse gases in the world, could triple its emissions between 1987 and 2010; its carbon dioxide emissions are expected to double; and ozone-depleting emissions will grow considerably. Of India's 3,119 towns and cities, only eight have full sewage disposal and treatment and only 209 have partial facilities. Environment conditions are deteriorating rapidly within these cities, and the effects fall disproportionately upon the poor.

USAID Role and Achievements to Date: USAID has initiated programs to identify technology gaps or emerging market opportunities and to enable U.S. companies to supply a wider market for environmentally friendly technologies. India's current market for pollution control goods and services of around $1.7 billion is expected to surge to $4 billion by the turn of the century. To date, USAID has facilitated, through technical assistance and funding support, nine Indo- U.S. environmental business collaborations. For example, a 1993 Indo-U.S. joint venture between Mysore Kirloskar and SnyderGeneral, Texas with $1.8 million in USAID project assistance has already resulted in installed air pollution control equipment valued at $10 million to reduce gaseous and particulate emissions. Similarly, another Indo-U.S. joint venture between Agro Pulp Machinery Limited and Enders Process Equipment Corporation, Illinois was set up in 1994. With 150 agrobased paper mills in India, the potential market for this technology has been estimated at $600 million. USAID also is fostering the evolution of India's debt market to address the enormous requirement for long- term financing for environmental infrastructure.

Description: USAID has three major activities focused on addressing environmental concerns. The Trade in Environmental Services and Technologies (TEST) activity provides technical assistance to foster increased Indo-U.S. business linkages and project financing to assist Indo-U.S. environmental collaborations. The Greenhouse Gas Pollution Prevention (GEP) project, provides assistance to promote efficient use of bagasse and other biomass fuels to co-generate power for reducing greenhouse gas emissions. The GEP project also promotes the use of advanced technologies in conventional fossil fuel plants to bring in efficiency improvements and encourage commercial utilization of fly ash. Part of the Financial Institutions Reform and Expansion (FIRE) project helps expand India's capacity to finance treatment and safe disposal of sewage and municipal waste through a commercially viable system.

Host Country and Other Donors: Indian industries receiving financial assistance through the Industrial Credit and Investment Corporation of India (ICICI) will provide the equivalent of $10.8 million; the Industrial Development Bank of India (IDBI) will lend up to $80 million for bagasse cogeneration investments, and the National Thermal Power Corporation (NTPC) willl provide $10 million investment in energy efficient equipment as part of the host country's contribution.

Beneficiaries: The beneficiaries are Indian companies, primarily in urban areas, benefiting from clean air and improved access to water and sewerage; Indian technology and service firms; industry and business associations; financial institutions, power utilities, sugar industry, municipalities, and lower-income communities.

Principal Contractors, Grantees, or Agencies: Principal U.S. partners include: Sanders International and Community Consultants Inc.; U.S. Department of Energy PETC. Principal Indian partners include: Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, National Thermal Power Corporation, Housing Urban Development Corporation (HUDCO) and the Infrastructure Leasing and Financial Services (ILFS).

Major Results Indicators:

Baseline Target
Reduction in pollutants in waste water 0 (1993/94)1 15 (1997/98)
at selected industrial sites (% )

Reduction in gaseous emissions and 0 (1993/94)1 * 95 (1997/98)*
suspended particulate matter in air at 0 (1994/95) ** 4 (2000/01)**
selected industrial sites and power plants (%)

Hectares of fly-ash ponds and land fills 0 (1994/95)2 TBD (2002/03)
avoided due to commercial utilization of
ash (hectares)

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* Data is for TEST Project
** Data is for GEP Project
1 Source: Project Reports, National Environmental Engineering Research Institute,
Central/State Pollution Control Boards, Industry
2 Source: National Thermal Power Corporation, State Electricity Boards,
Captive Power Plants

PROGRAM: INDIA
TITLE AND NUMBER : Increased Conservation and Availability of Crop-Related Germplasm, 386-S006
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $-0- DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 1997

Purpose: To increase India's capability in conservation and availability of crop-related germplasm for national, regional and global research and exchange.

Background: India is one of the foremost sources of the world's biodiversity and the origin of at least 20 important crop species including rice, citrus (lemon and orange), banana, cucumber and millet. Loss of genetic diversity threatens many of these crops, which must be preserved for posterity.

USAID Role and Achievements to Date: USAID is supporting the construction of four quarantine greenhouses and a major genebank facility to store about 800,000 germplasm samples. USAID also supports a comprehensive joint exploration and collaborative research network with U.S. institutions; the development of a database management and exchange system; the training of scientific staff; and the development of an improved capability for in-country, regional and global training in the collection, preservation, and global exchange of germplasm.

Of the 200,000 million germplasm samples already stored, 70,000 samples have been exchanged with 78 countries, including 10,000 with the United States. Cucumber and melon samples exchanged with the United States have notonly increased the U.S. national collection by 25% but have saved the multi-billion dollar melon industry from susceptibility to viral and other diseases. Similarly, through the exchange of disease resistant wildraces (sunflower and jojoba) with potential high oil content, India will soon dramatically increase its vegetable oil production. Recent exchanges of citrus (orange and sweet lime) wildraces with the United States have a potential of doubling varietal availability and flavor of oranges in the United States.

Description: The genebank will be the world's largest and will serve as a leading global repository of crop-related germplasm samples. Collaborative research programs have fostered institutional linkages between Indian and U.S. institutions resulting in scientific exchanges and transfer of technology such as DNA fingerprinting. Regional quarantine facilities have accelerated conservation and exchange of endangered medicinal and herbal plant species used in the multi-billion dollar global medicine and cosmetic industry.

Host Country and Other Donors: India is contributing more than 50% of the cost of the construction of the genebank, as well as financing the procurement of indigenous equipment and in-country training. India also funds the operation of the entire genebank storage system. Other donor assistance supplements USAID's efforts by providing, for example, equipment for the genebank.

Beneficiaries: Farmers, researchers and communities involved in preservation of crop germplasm samples, nationally, regionally and globally who will beneift from this program.

Principal Contractors, Grantees, or Agencies: USAID implements the activity through a U.S. institutional contract or Winrock International, and an inter-agency agreement with the U.S. Department of Agriculture. The host country, through the National Bureau of Plant Genetic Resources (NBPGR), implements construction of the genebank, procures indigenous equipment, conducts in-country training and coordinates the nationwide plant genetic resource system development.

Major Results Indicators:

Baseline Target
Increased number of 176,000 (1993/94)1 800,000 (2004/05)
germplasm samples stored in genebanks
(number of accessions)

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1 Source: Progress report, Newsletters, National Bureau of Plant Genetic Resources

PROGRAM: INDIA
TITLE AND NUMBER: Reduced Transmission of HIV Infection in India, 386-S007
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $1,500,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 2002

Purpose: To assist the southern state of Tamil Nadu to control the spread of the human immunodeficiency virus (HIV) and the acquired immunodeficiency syndrome (AIDS).

Background: USAID's program in the southern state of Tamil Nadu to prevent and control HIV/AIDS responds to concerns about both health and economic growth. Recent studies have shown India is potentially one of the countries in the world most vulnerable to a dramatic increase in HIV/AIDS. The number of Indians estimated to be HIV positive-- 1.5 million today--could grow to five million by the end of the decade. The cost to India, both in demand on its already overtaxed health system and in loss of productive workers, could be staggering. Tamil Nadu is one of the areas of documented high HIV transmission.

USAID Role and Achievements to Date: USAID's seven-year, $10 million, AIDS Prevention and Control (APAC) activity in Tamil Nadu supports the participation of nongovernmental organizations (NGOs) in AIDS prevention, capitalizing on their commitment, credibility and access to high-risk groups. In the past year, USAID has financed the establishment of a new AIDS unit at Voluntary Health Services, Madras, a well respected Indian NGO, as the implementing agency to manage sub-grants to NGOs working with high-risk groups, their spouses, children and communities. The unit has recruited and trained staff, briefed government counterparts and local NGOs, trained 50 journalists in improved HIV/AIDS reporting, established criteria and made its first grants to NGOs to provide training, counseling and education on HIV/AIDS prevention. A statewide sexually transmitted disease (STD) control strategy has been developed by the NGO implementing agency.

Description: USAID supports NGOs with both funds and technical assistance to design and implement community- based prevention programs which target high-risk populations, including prostitutes and their clients, and STD patients. NGOs educate target populations, promote condom use, and enhance STD services and counseling.

Host Country and Other Donors: The Government of India's (GOI) World Bank-funded $100 million, seven-year, National AIDS Control Program (NACP) assists the government health system in Indian states to work on HIV/AIDS prevention. The British Overseas Development Agency is engaged in developing a country-wide intervention with truck drivers to promote behavior modification and STD treatment. The European Union is supporting NGO activities in several Indian states. Most other donors contribute funds to the GOI's NACP. After the creation of UNAIDS, UN agencies are in the process of redefining their involvement in India's NACP.

Beneficiaries: Though high-risk sexual activity takes place mostly between female commercial sex workers and their male clients, infection is transmitted to the female partners of clients. In addition to commercial sex workers and their clients, women and their children who are family members of clients form 50% of the beneficiaries.

Principal Contractors, Grantees, or Agencies: USAID's worldwide AIDSCAP Project provides technical support to Voluntary Health Services, Madras, which is the modal voluntary agency entrusted with APAC activity implementation.

Major Results Indicators:

Baseline Target
Increased knowledge of at least two TBD (1995/96)* 70% increase (2001/2002)**
protective measures against HIV transmission
amongst those engaging in high-risk behavior.

Increased use of condoms among high- TBD (1995/96)* 35% increase (2001/2002)**
risk groups.

Increase in the proportion of the high-risk TBD (1995/96)* 49% increase (2001/2002)**
population receiving appropriate STD care.

Increase in the number of NGOs involved TBD (1995/96)* 100 additional (2001/2001)**
in HIV/AIDS prevention activities.

*Baseline figures currently being documented - available 5/96
**Projected estimates - to be finalized after baseline figures become available

PROGRAM: INDIA
TITLE AND NUMBER : Increased Investment in Agri-business by Private Firms, 386-S008
STATUS: Continuing
PROPOSED OBLIGATION AND FUNDING SOURCE: FY 1997: $3,950,000 DA
INITIAL OBLIGATION: FY 1995; ESTIMATED COMPLETION DATE: FY 1998

Purpose: The purpose of the Agricultural Commercialization and Enterprise (ACE) project is to reduce post harvest losses and accelerate competitive agribusiness development through increased investment flows and Indo-U.S. business linkages.

Background: Agriculture contributes over 30% of India's gross domesitc product (GDP) and, directly or indirectly, provides a living to almost 700 million people. Less than 1% of India's horticultural production is processed in India, compared to 70% in Brazil and the United States. Inadequate infrastructure causes approximately 30% post harvest losses.

USAID Role and Achievements to Date: USAID, through its Agricultural Commercialization and Enterprise (ACE) project assists competitive and pioneering agribusiness ventures producing high value horticultural produce and agroprocessing that will expand rural employment, including women, and incomes. Among the 20 projects approved by ACE, grape production has led to additional investments in 15 new projects where U.S. companies (e.g., ThermoKing and HumiFresh) have supplied cooling equipment. Convinced by this success, formerly reticent financial intermediaries now invest nine dollars for every dollar financed by the ACE project. USAID also has atively facilitated Indo-U.S. linkages through training programs in leading U.S. universities (e.g. the University of California at Davis), business exchanges (e.g., spices, almonds),and by sponsoring Indian agribusiness leaders at key U.S. trade events. These business-nrturing activities have improved India's perception of U.S. exporters and manufacturers of agribusiness equipment. For example, ACE project support of Chicago's 1995 Megashow resulted in a new joint venture in cooling equipment and will open South Asia's markets to a medium-sized U.S. company.

Description: USAID lends seed capital for pioneering horticultural and agribusiness ventures, and in so doing paves the way for larger investors. USAID also provides U.S.-based technical assistance and training to individual firms and industry associations and nurtures Indo-U.S. business linkages.

Host Country and Other Donors: In response to ACE effectiveness, the Government of India (GOI) transferred over $20 million in local currency to the Industrial Credit and Investment Corporation of India (ICICI) to finance agribusiness operations. Additionally, after the creditworthiness of agribusiness projects had been demonstrated, ICICI invested over $45 million from its own resources in similar agribusiness projects. Other donors such as the European Union, United Nations Development Program, Food and Agriculture Organization, and the World Bank have sought USAID assistance in replicating these activities. As an example, the World Bank is designing a similar $300 million project for the state of Uttar Pradesh.

Beneficiaries: Farmers, rural women, young entrepreneurs, financial institutions and business associations benefit from the establishment and expansion of agribusiness.

Principal Contractors, Grantees, or Agencies: USAID implements activities through Chemonics International, a U.S. contractor; the International Executive Services Corps, a U.S. private voluntary organization; and ICICI, the leading Indian private development bank.

Major Results Indicators:

Baseline Target
Increase in total investments 0 (1991/92)1 60 (1997/98)
in ACE-funded agribusiness projects ($ million)

Increase in ICICI lending to the agri- 0 (1991/92)1 200 (1997/98)
business sector ($ million)

Increase in value of horticultural 155 (1991/92)2 380 (1997/98)
exports ($ million)

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1 Source: Industrial Credit and Investment Corporation of India, Chemonics International
2 Source: Agricultural Products Export Development Authority (APEDA)